Understanding the Two License Types
In the United States, insurance agents typically hold either a life and health license or a life, accident, and sickness (LAS) license. While the terminology can be confusing, they are not the same. A life and health license authorizes an agent to sell life insurance, annuities, and health‑related products such as health insurance policies and health savings accounts. An LAS license expands the agent's scope to include accident and sickness coverage, which covers non‑fatal injuries, temporary disabilities, and certain medical benefits not covered under standard health plans.
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Key Exam Differences
Both licenses require passing state‑approved examinations, but the content and number of exams differ. The life and health license typically requires a single exam covering life insurance, annuities, and health insurance basics. The LAS license, on the other hand, requires an additional exam focused on accident and sickness policies, including coverage nuances, claim procedures, and regulatory compliance for those products.
State‑Specific Variations
State insurance departments set distinct curricula. For example, California's life and health exam includes modules on Medicare, Medicaid, and short‑term health plans, whereas the LAS exam emphasizes workers' compensation and employer‑sponsored accident plans. Some states combine the exams into a single "life and health" test that implicitly covers LAS content, but the resulting license still carries the LAS designation in the state's records.
Professional Implications
Holding an LAS license allows an agent to offer a broader product line, potentially increasing commissions and client appeal. However, the additional exam and continuing education requirements can add time and cost to professional development. Agents who focus solely on traditional life and health products may find the life and health license sufficient for their business model.
Continuing Education and Renewal
Both licenses require periodic renewal, usually every two or three years. The renewal process mandates continuing education credits, with LAS license holders needing to complete courses specific to accident and sickness coverage. The exact credit load varies by state: some require 20 credits, others 25, with a portion dedicated to LAS topics.
Choosing the Right License
Agents should assess their intended product portfolio, client demographics, and career goals. If an agent plans to specialize in life insurance and standard health plans, a life and health license suffices. If the agent aims to sell accident or sickness policies—common in corporate or industrial settings—the LAS license becomes essential.